340 RURAL CALIFORNIA 



but he could be greatly benefited by a different sys- 

 tem of credit, particularly where the lien system is 

 still in operation. It would be the purpose of such 

 systems, aside from providing loans on the best 

 terms and with the utmost freedom consistent with 

 safety to keep as much as possible of the money in 

 circulation in the open country where the values 

 originate. The present banking systems tend to take 

 the money out of the country and to loan it in town 

 or to town-centered interests. . . . All unnecessary 

 drain from the open country should be checked in 

 order that the country may be allowed and encour- 

 aged to develop itself/' 



Following this declaration discussion of ways to 

 provide rural credit continued in California as also 

 in other states. The legislature of 1913 provided for 

 two delegates x to proceed with the American Eural 

 Credit Commission authorized by the government (as 

 suggested by the late David Lubin of Sacramento) to 

 study European methods of providing loans to farm- 

 ers. After the return and report of this commission,, 

 the legislature of 1915 created a commission of "rural 

 credit and land settlement/' as considered in con- 

 nection with the latter subject in Chapter IV. 



In 1916 Congress passed an act organizing twelve 

 district Federal Farm Loan Banks on the basis of 

 National Farm Loan Associations, the latter be- 

 ing constituted of those who desired to make loans 

 on the security of lands and farm buildings. The 

 Eleventh District consists of California, Nevada, 



1 Harris Weinstock and E. J. Wickson. 



